Waterloo, Ontario-based RIM's BlackBerry e-mail application will be integrated into Nextel's wireless and its Direct Connect digital two-way radio service, as well as its Web services.

The BlackBerry is a ubiquitous PDA with a built-in keyboard that lets users send and receive text messages. It has a zealous following, particularly among business users.

"(The) primary target will continue to be the business market," said Nextel's chief marketing officer, Tom Kelly. "That's where it's most relevant."

The companies said the PDA will operate on Nextel's nationwide network and use Motorola's iDEN digital technology. Motorola holds a 14 percent stake in Reston, Va.-based Nextel Communications Inc.

Part of the deal includes a licensing agreement signed by Motorola and RIM that lets iDEN and RIM technologies be used in certain devices from both companies.

Motorola has more than 10 million iDEN handsets in use across North America. The technology is used in wireless phones and features "always on" Internet access, text paging and a two-way radio.

Shares of RIM surged on the news in trading Thursday Nasdaq Stock Market, rising 11 percent to $23.48, before falling 37 cents in extended trading. Shares of Nextel were up 7.7 percent to $8.51 on the Nasdaq, but fell 9 cents in after hours trading.

On the New York Stock Exchange, shares of Motorola were down 6 cents to $13.50, before falling another 5 cents in extended trading.